Good morning, Fall is upon us;
Residential Lending
Fruits of preparation & Smart Buying
Call us. Call now.
Let’t talk job markets and how they plays into potential actions by the Federal Reserve Board. Their meeting next week will help set the tone for Fall real estate and investing.
Curiosity: This is first “confirmation” hearings for a new Board member, with headlines about the politics of a sitting President ‘influencing the board’. My recollection: This is how it goes. Past presidents have all done the same thing, from judgeships – including Supreme Court – on down the line. As we known, sometimes the MSM has its own political agenda. Let the President do his job.
This month, let’s take an in-depth consideration of our residential real estate market, the overall economy, and interesting solutions – few are aware – regards our lending market.
Always, let’s talk: Real estate is above all, a hyper local market with regards to buyers & sellers, life styles, rent or buy, value, etc. Yet, most commentary is far more nationwide in aspect, limiting its specific value. What is also key: Little known lending strategies that expand the knowledge base and better customize your lending needs. Good News: We have ready access to the full range of ‘standard’ lending products needed for your success. Call!
We are here to be your lending & planning specialist. How can I be of assistance to you? Long-range planning? Short-term immediate need? Overall review view your finances? Give a ring, or email. Let’s talk, first.
Access the Equity in your Home – Without Selling:
Much appreciated methods to keep your home: 1) Reverse mortgage: 1st loan for those 62 and older; a 2nd loan for those 55 or over. How good is this? 2) Equity share with no age limitations. Good News: Both have no required payments required. A great way to access equity, if and when needed. Questions and more details – Call today.
Important Points:
1) Mortgage Rates: Mortgage rates have eased. Nationwide, hitting solidly in the 6’s. Plus, there is an easing in risk-based premiums. Mortgage rates are moving closer to the historical spread relative to 10-Year Treasury. Plus: Current is trend lower – with the 10-Yr Treasury.
Best advice: Make this month your month to prepare.
Summer Buyers speaks to good timing and ready Sellers.
WE can show you how to buy now and enjoy rate cuts later. CALL!
2) Economy:
A) Economic Activity: Second quarter GDP growth was revised upwards from 3 % to 3.3%, while 1st quarter was revised lower by 0.2 %. Net sum gain is a plus 0.1 % for the first half of the year. 3rd Q GDP consensus is 2.2 % growth. Very good overall.
B) Employment: Deep dive reveals weekly unemployment filings are sustaining low numbers, roughly 225 K per week. This, while extended benefits rose to 200 K over the last 18 months to almost 2 M. Now, the total number of unemployed people has risen 1.1 M during the same period to approx. 7.2 M. Such supports my feeling things are not too bad – low levels of new claims – yet a flat economy.
C) Jobs: Last weeks BLS report was 2nd month in a row with much more realistic numbers. Unemployment rate edging up to 4.3 %, the U-6 number bumping up to 8.1 %. More negative revisions to earlier months.
Future job prospects are slimming: A) JOLTS comprehensive report shows flat, ranging 7.2 to 8 M; and B) Job openings are now lower than people looking for work.
Other comments: Workers averaging 2 hours less per week, than pre Co-Vid. Less hours, might speak to underemployed, as it is more cost effective for companies than hire / on-boarding costs.
All-in-all the economy is slowing. In spite of growing GDP, the economy typically tends to follow employment. Good News: over 90 % of working people are working, thereby supporting families, investments and life. We all like to attend parties, but not every night, is a party.
3) Residential Real Estate: Appreciation, though easing nationwide, remains positive, year-over-year. And this in the face of sticky inflation, immigration, wonky jobs reports, tariff tantrums, etc. Pretty good I say.
Consider: Nationwide, SFRs have increased in value 77 of the past 83 years. Second: Most SFRs are purchased having a down payment and when added to appreciation, you see a massive amount of capital moving through to family heirs in the coming years.
Coming soon: 1) Vantage Score – a new credit score system allowing rent payments to be considered for credit score; 2) Crypto coming soon as an additional asset documentation; 3) LLPA’s (Loan Level Price Adjustments) how loans get priced with Loan to value, property type, credit scores and more. Future adjustments lower, reducing overall interest rate; 4) Ban / or reduce the “hammering” of calls, texts, and emails every time you have a credit check.
Good news:
We are well equipped to help Buyers succeed.
Your professional expert ready to start today. Call us.
4) Commercial Real Estate: Gaining the upper hand
Excellent investment opportunities are at hand.
Call now. Let’s start preparing now
Inflation: Services sector up 1.1 % – not effected by tariffs. The PPI including the core was up 0.9 % Month-over-Month. Perhaps tariff effects are beginning to show, as costs are expected to be shared among suppliers, retailers and consumers.
Consumer spending remains strong, with no data on whether by paying cash, credit, buy now pay later. A good support number for the expected 3rd Quarter GDP growth.
On a deflationary point, “Industrial Capacity” continues to show no signs of improving. Excess capacity can lead to price reductions to increase capacity utilization rates.
“Don’t wait to buy real estate, buy real estate and wait.” – T. Harv Eker
What makes us special – our work effort and caring style – is meeting each person where they are in life, and offering effective guidance to solid, stable, and actionable options. All with a uniquely individual flavor. Give a ring today. Let us help build a solid path for you and those you care about. “Preparation and Patience” wins.
What has been recently happening
Within Michael Ryan and Associates?
Our successes continue. A recent purchase of a new home for a long-time client’s daughter. Closed on time with a 30-Yr mortgage rate in the low 6’s. These rates are Good News.
Another client utilizing a ‘no payment’ option loan to work through the tail end of a very difficult time. More Good News: We have more than one such option. Call us.
And another client – having a very special niche – I referred to a great banking partner. Every body wins. We are here for you and your success. We are ready to win for you, even referring you when best for you. First and foremost, it’s about helping you.
Each example starts with a first conversation, with no pressure. A simple conversation about the needs and goals, with the objective of working thru available and various options.
Call Today. Or, check my web page. Set a time for a first conversation – at your convenience.
More Good News – What we Do!
To the benefit of our clients, we have developed relationships far and wide – over the recent decades. With each relationship comes different tools, different options. One of our tools is the “Associates” that makes up our company name.
More tools: Residential lending allowing for reverse 1031 exchanges, a business manager of an LLC being able to sign papers for a very high net-worth individual who desires to not have their name on anything, strategies to defer capital gains taxes, to strategies able to fund large depreciation dollars to shelter one against big income tax bills. All reasons to call.
The options go far and wide. We start with YOU. And love to see what can be accomplished.
Have an idea not easy to pursue? – Call us. We love to have conversations to flush out every potential option and method, offering you a full range of the best choices.
“It starts with our first conversation”
Preparing for your tomorrow
Let’s start today.
With all the financial talk, we look forward to meeting with you, where you can talk through questions, thoughts, and solutions. All in the name of serving you best.
And what is most important: Those we have around us. Be well and be safe! Enjoy your family and friends, with thankfulness and gratitude.
